Note: This FAQ applies only to the Klutch Unsecured Credit Card. If you’re using the Klutch Spend Card, some of the terms and features described here may not apply.
If I pay my balance in full every month, will I be charged interest?
No. If you pay your statement balance in full by the due date each month, you won’t be charged any interest. This is known as the grace period.
What is the grace period?
The grace period is the time between the end of your billing cycle and your payment due date. During this time, you can pay off your full balance without paying interest on new purchases. Klutch provides a 25-day grace period as long as you were not carrying a balance from the previous cycle.
How do you calculate the interest?
Interest is calculated using a daily periodic rate based on your Annual Percentage Rate (APR). We apply this daily rate to your average daily balance across the billing period. If you pay your full balance by the due date, no interest is charged.
Why does it say that interest will be charged from the transaction date on my open line agreement?
That language refers to how interest is calculated if you carry a balance. If you don’t pay your statement balance in full, interest accrues from the original transaction date of each purchase, not from the billing due date.
What is an open-end line of credit?
An open-end line of credit allows you to borrow, repay, and borrow again up to your approved credit limit. There’s no fixed number of payments or end date, as long as your account remains in good standing.
Why are there both a cardholder agreement and an open line agreement?
The cardholder agreement covers your use of the Klutch card, including transaction terms and network rules. The open line agreement governs the credit relationship between you and the lender, including interest, repayment terms, and legal rights. Both are necessary to clearly define the full scope of your account.
Is Klutch different than other cards on how you charge interest?
Klutch follows standard industry practices for interest and grace periods, but we’re transparent about how and when interest is charged. Unlike some cards, we do not use deferred interest or retroactive penalties. Our goal is to make the terms clear and easy to understand.
Who is the lender of record?
Pier Financial is the lender of record for your Klutch line of credit, and Third National is the card issuer. We’ve separated these responsibilities to give you more transparency and ensure you get the best possible deal. Pier Financial handles the credit relationship, while Third National manages the issuance and processing of the card.
Will carrying a balance affect my credit?
Yes. Like any credit card, carrying a high balance can impact your credit utilization ratio, which affects your credit score. Paying on time and keeping your balance low helps improve your credit over time.
Can I increase my credit limit?
Yes. You can request a credit limit increase after a few months of responsible usage. Approval depends on factors like payment history, usage patterns, and updated credit data.
Does Klutch report to the credit bureaus?
Yes. Klutch reports your account activity, including payment history, credit limit, and balance, to the major credit bureaus. Making on-time payments and keeping your balance low can help build or improve your credit over time. Missed or late payments may negatively impact your credit score.